Market Commentary

What will happen this week?  At the end of last week, equities slipped while bond yields climbed after a reading of long-term inflation expectations rose unexpectedly and a

As argument can be made that monetary policy is now neutral. The inflation rate as measured by the CPI is 5% and the overnight rate is 5.0%. It is largely expected the Fed will not increase rates at

Three-month Treasury yields are at the highest level in more than two decades amid heightened risk of a default if Congress fails to lift the debt ceiling on

The unexpected pickups in hiring and wages last month increase chances the Federal Reserve will hold interest rates high for longer and potentially keep the door open to

Debt cap fears are beginning to be manifested in short term Treasuries. Yesterday the government sold one-month bills at the highest level in many years underscoring just how quickly the debt ceiling landscape has shifted in the wake of

As widely anticipated, the Federal Reserve raised interest rates by a quarter percentage point and hinted it may be the final move in the most aggressive tightening campaign since

The risks that a political impasse will force the government to renege on its obligations keep rising with no negotiations or progress.  Worse, it appears both

Markets were rather uneventful yesterday. Will this soon change?  Both the Federal Reserve and the ECB will make monetary policy decisions and give signals as to

Tuesday commences a two-day FOMC meeting.  Consensus is expecting the Central Bank to increase the overnight rate by another 25 bps.  It is the post meeting statement that is

First quarter real GDP rose by 1.1%, lower than the consensus view of 2.0%.  The internals, however, presented an entirely different view.  Final sales to domestic purchasers, which take out